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The Record
Chairman’s Message
Board of Directors' Report
New and Revised Policies and Procedures
Reforming to Remain Relevant
Managing for Development Results
Results in Country Strategies and Programs
Project Performance Management Systems
Global Agenda
Innovation and Efficiency Initiative
New Instruments and Modalities
>>Other Policies and Strategies
Performance-Based Allocation Policy
Internal Initiatives
Governing Structure
Financing Operations
2005 in Figures
Management
Board of Directors
Operations in 2005
East and Central Asia
Mekong
The Pacific
South Asia
Southeast Asia

New and Revised Policies and Procedures

Other Policies and Strategies

ADB has been reviewing and improving its policies, strategies, and approaches to ensure that they are focused on results and are relevant. In 2005, ADB reviewed its existing Private Sector Development Strategy and started preparing a new strategy for regional cooperation and integration. Following the review of its Private Sector Development Strategy, ADB prepared and submitted to the Board of Directors a new strategic framework. This focuses on enabling environment intervention to create a level playing field for instruments, mobilization of finance for private sector development, and new ways of financing public goods and services. The framework is accompanied by an action plan.

Setting the tone for policy review, meanwhile, the Public Communications Policy was approved. After extensive and transparent consultations with interested groups around the world, working drafts were posted on the internet, and extensive comments were publicized on the ADB intranet. ADB closely considered all contributions in the final product, which is now setting a progressive tone for the organization’s dissemination of knowledge and information.

Similar wide-ranging consultations were held as part of the review of the implementation of ADB’s governance and anticorruption policies. ADB circulated the review conclusions in the draft paper Improving Governance and Fighting Corruption: Implementing the Governance and Anticorruption Policies, which was made publicly available for comment in December 2005.

The review finds that ADB has succeeded in raising the profile of governance in the region and significantly increased assistance between 2000 and 2004. However, the review concludes that there is a long way to go toward embedding implementation of the governance and anticorruption policies in the mainstream of ADB operations. The sheer scope of the governance policy and its action plan has resulted in too many small projects of short duration and thinly spread staff resources.

The review also concludes that ADB has achieved some success in dealing with fraud and corruption in procurement and in increasing awareness of the Anticorruption Policy. But less progress has been made in assessing the impact of corruption on a country's ability to meet its development goals.

The review also finds that service delivery in many DMCs is plagued by inefficiency and corruption, for example, in health, education, water, licensing, revenue, and land titles. It says that higher priority should be given to supporting investments in local transparency, participation, and complaint mechanisms; and strong preventive measures against corruption must be built into project design and followed up with effective oversight and corruption risk mitigation management during implementation.

ADB also continued implementation of its Performance-Based Allocation Policy, which governs the allocation of grants and loans to borrowers from the ADF.

And the year included work to prepare ADB’s second Medium-Term Strategy, which will introduce some strategic measures as the first steps to a more comprehensive longer-term ADB response to the rapid and far-reaching changes in the region is experiencing. The document will be made available in 2006 (www.adb.org/ Documents/Policies/MTS/2006/). A review of ADB’s Long-term Strategic Framework is also to progress, beginning in 2006.

Public Communications Policy: Making Information Available

ADB’s new Public Communications Policy heralds an ambitious shift toward sharing knowledge. ADB commits to a refined and more focused approach to external relations, with clear positions on issues of importance, better information products to explain them, and wider distribution. The policy's new rules regarding the disclosure of information about its operations put ADB ahead of other international finance institutions.

The policy forthrightly supports the right of people to seek, receive, and impart information and ideas about ADB’s activities. Among its unique features, it will proactively make information publicly available by posting it on the web, and not only after a request. People should be able to find the information they want, rather than having ADB presuppose what they need.

If the information ADB holds is not subject to clear confidentiality criteria, it must be publicly disclosed. The policy even favors disclosure of sensitive information if the public's interest in receiving the information outweighs the harm that may be caused to ADB. By leapfrogging other international development organizations, the new policy puts ADB apace with a global movement toward greater transparency and disclosure. The organization believes that greater awareness and understanding of its objectives will help generate public trust.

Disclosure Enables Participation

Overall, the more transparent approach under the policy ensures that much more information will be available to the public in the early stages of policies, country strategies, or projects—before decisions are made and members of the public can no longer influence the development initiatives that affect them. By sharing information, people can better participate in decision making.

ADB also recognizes that those who need information do not necessarily have access to the internet. Early in the design of projects that affect local residents, information will be made available to the people likely to be affected, and ADB will work closely with the borrower or project sponsor to ensure information is provided and feedback sought. A focal point will also be designated for regular contact.

Organizations such as national-level civil society groups increasingly want to be involved in their country's development strategy. ADB enables this involvement by requiring that draft country strategies and programs be disclosed to in-country stakeholders.

ADB regularly consults a wide range of groups before adopting or revising new operational policies and strategies, and now requires draft policy and strategy papers to be posted routinely on its website.

Disclosure Enables Accountability

The policy supports the rights of people to seek, receive, and impart information and ideas about ADB’s activities

From the beginning of open and broad-based consultations with a huge spectrum of interests in preparing the policy—a process one major nongovernment organization (NGO) called the best policy review to date among multilateral development banks—ADB has signaled a new direction under this policy. As a public finance institution, it wants to be held publicly accountable.

ADB-supported development activities are paid for by citizens of its member countries, so the organization recognizes that it needs to be transparent with the public. ADB reviewed all the documentation it regularly produces and asked the question: What is the harm in releasing this document? This puts the onus on ADB staff to defend why information cannot be released.

The policy also favors “redaction” rather than withholding of information; that is, ADB will remove the confidential part of a document in order for the bulk of it to be released. And ADB will not withhold information simply because it is negative. It will report failures and disappointments, as well as successes.

ADB now has strict time limits for responding to requests for information, and regularly monitors the policy to ensure that it operates in accordance with its principles and rules. Reports on the policy's implementation will be produced and disclosed annually.



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